Q: What happens if the reserves go to zero? What is insolvency? B.E., TarzanaA: HOAs that fail to set aside money in their reserve fund are progressively falling into an unliquidated state of insol… ...

Then, the HOA must declare an emergency assessment, seek member approval for a special assessment, or seek a major bank loan. I don’t think a 100% reserve funding requirement is necessary for ...

Then, the HOA must declare an emergency assessment, seek member approval for a special assessment, or seek a major bank loan. I don’t think a 100% reserve funding requirement is necessary for ...

A healthy reserve fund can not only make it more likely that the HOA would qualify for a loan but can itself be a short-term borrowing source. Best regards, Kelly.

Then, the HOA must declare an emergency assessment, seek member approval for a special assessment, or seek a major bank loan. I don’t think a 100% reserve funding requirement is necessary for ...

One common requirement is that the HOA have a certain amount of money in its reserve account, and another is that the HOA not have too many delinquencies. A healthy reserve fund can not only make it ...